BoG Monetary Policy Committee cuts policy rate to 25%
The Bank of Ghana’s Monetary Policy Committee has cut its policy rate by 300 basis points, from 28% to 25%, the central bank has announced.
During a press briefing on Wednesday, July 30, following the conclusion of the Committee’s 125th regular meetings, Committee Chairman and Governor of the Bank of Ghana, Dr. Johnson Asiama disclosed that the decision to lower the policy rate by 300bps received majority support from the seven-member committee.
“The MPC, by a majority decision, voted to lower the monetary policy rates by 300 basis points to 25.0%. Looking ahead, the Committee will continue to assess incoming data and likely reduce the policy rate further should the disinflation trend continue.” He stated.
Complementing the briefing with the MPC’s press statement, Governor Asiama noted that the economy was buoyant in the first quarter of 2025, with an annual GPD growth of 5.3%, compared to the 4.9% recorded in the same quarter of 2024.
“The latest business and consumer confidence surveys reflected improved sentiments on the back of easing inflationary pressures and strong optimism about economic conditions,” part of the MPC’s statement read.
Dr. Asiama noted that these positive developments over the months guided the Committee’s decision.
“Overall, the Committee noted that macroeconomic conditions have significantly improved, inflation expectations are broadly anchored, external buffers have strengthened, and confidence in the economy is returning,” he said, “the July forecast also show that headline inflation is expected to decline further in the third quarter of 2025 and trend within the medium-term target of 8±2 percent by the end of 2025, earlier than initial projections”
While expressing optimism about future economic conditions, Governor Asiama also cautioned about potential challenges.
“There are upside risks to the inflation outlook, which include potential supply chain challenges emanating from the global trade tensions and upward adjustment in utility tariffs.” He added.
Despite these concerns, he reassured stakeholders that the projected impact of these risks on inflation is expected to be mitigated by a well-calibrated monetary policy approach and ongoing fiscal consolidation efforts.
See Full MPC Statement Below:
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